Number of arrests hit 80 as investigation into collapsed exchange JPEX continues
The crypto exchange’s shutdown left thousands of investors in limbo. Even 18 months later, there are few answers.
Hong Kong authorities have arrested more than 80 individuals in connection with the collapse of cryptocurrency exchange JPEX, the Hong Kong Police Force (HKPF) confirmed to Scamurai. No formal charges have been filed as investigations continue.
Since its downfall 18 months ago, JPEX’s shutdown has left at least 2,636 victims with reported losses totalling HK$1.6 billion (US$204 million).
Founded in 2019 in Dubai, JPEX gained traction among crypto users in Hong Kong and expanded its presence through events in Taiwan, Australia, and the Philippines.
It bolstered its popularity by partnering with local influencers and hosting promotional activities such as crypto education seminars and free ice cream giveaways, as well as advertising on public transport.
Its unravelling began on 13 September 2023, when Hong Kong’s Securities and Futures Commission (SFC) issued a warning that JPEX was operating without a licence and was suspected of violating anti-money laundering and counter-terrorist financing laws.
The same day, authorities raided JPEX-linked offices in Hong Kong. The crackdown coincided with Token2049, a major crypto event in Singapore, where JPEX abandoned its exhibition booth mid-event.
For almost three months, the exchange continued issuing updates to users while simultaneously hiking withdrawal fees to 999 USDT, effectively trapping funds on the platform. On 25 September, the exchange suspended trading.
JPEX shifted blame for its problems onto the SFC, accusing regulators of obstructing its compliance efforts and refusing to engage with them.
It posted its last communication on its blog on 6 December, 2023.
Authorities also widened their probe beyond JPEX itself, targeting cryptocurrency over-the-counter (OTC) shops with suspected ties to the exchange.
Several colourful chains around the city were raided and shut down, among them animal-themed exchanges Coingaroo and Cryptopard.
Another OTC location took an even more unconventional approach to crypto trading, combining cryptocurrency transactions with a burger restaurant themed around the Bored Ape Yacht Club NFT collection.
Staff members at some of these stores were among those arrested.
Several high-profile influencers who had promoted JPEX, including Joseph Lam and Priscilla Ng, were also detained, as well as other figures linked to its operations. Early on in the investigation, police apprehended four individuals described as being “relatively close to the core” of JPEX’s operations.
But with few updates in the case, coverage of the investigation has waned in Hong Kong for the time being.
There have been some small victories for victims. In October 2024, a Hong Kong court ruled in favour of two former JPEX users, awarding them HK$1.85 million (US$236,000) in damages after finding that the exchange had transferred their funds to unknown crypto wallets without authorisation.
Yet despite dozens of arrests and asset seizures, authorities have yet to bring charges or reveal the key masterminds behind JPEX.
For the thousands of affected investors, the wait for answers—and the hope of recovering their money—continues.